General Information » Economy » Beijing Overview

While Beijing does not have a manufacturing base comparable to Shanghai or Shenzhen, as China’s capital, it plays a pivotal role in the county’s economy. Many banks (including the Bank of China), insurance companies and other financial institutions are headquartered here. Service industries around finance, IT, and scientific research and development accounted for 47% of the city’s GDP from 2002 to 2006.

The 2008 Olympics has also provided a massive boost to the city’s economy and infrastructure. Billions of dollars are being spent on facilities, transport, telecommunications and environmental improvements. The total invested in infrastructure between 2002 and 2006 reached almost ¥284 billion (more than $38 billion), with an annual increase averaging 16%. During this period, 60km of rail tracks were laid as part of an expansion of the subway and rail networks. Real estate development during the same period totalled ¥691 billion (about $93 billion). In the first three quarters of 2007, a further ¥74.7 billion (about $10 billion) was invested in infrastructure.

The city’s citizens have also grown more affluent. The internet is now a part of everyday life for Beijingers, with 95.7 computers for every 100 households. City dwellers like to keep in touch with each other by telephone, too. In 2006, there were 57.3 landlines for every 100 homes, and 99.4 mobile phones for every 100 people. By the end of 2006, Beijing also had more than two million private cars, adding to the city’s pollution problem.